Next of kin - parents or children?

[Zarah786]

In England, my partner and I have been together for 10 years, for many reasons we have decided not to register our 'cultural' marriage, so I'm still a Miss.

We have two children, we own our home jointly. We have some individual ISAs and joint savings.

I have two rental properties in my name and other half has two in his name.

We always assumed that if something happened to one of us our next of kin would be our children. Recently I've heard, if our parents are alive then they are next of kin before our children. Just wanted to clarify what the rules are in the UK.

Would kids be charged inheritance tax? Is it easier just to register our marriage so it's recognised in the UK?

Have you got wills? You can specify who gets what in them

If you are asking about inheritance, if you die without making a will your children would inherit, not your parents. There isn't enough information to say whether there would be any IHT to pay but, if there is any liability for IHT, it would be paid out of your estate.

If you want to avoid inheritance tax being due, you need to be married and leave it to your spouse.

There are no specific laws in the UK that give an "order" for next of kin, eg putting your parents above your child or vice versa. But if you die without a will, your children will inherit, not your parents. If you make a will, you can leave it to whoever you want.

Your children are your next of kin ahead of your parents.

Never mind your kids, what about you? Unless you’re a much higher earner than your husband, or you own your house and he doesn’t, you are likely missing out on important protections by not being legally married. If he divorces you or dies, you could be left high & dry.

Next of kin is more about decisions taken in hospital, and who you tell work to contact should something happen to you when you are at work.

If you are thinking about inheritance, then you need to write what you want to go to whom in your will. As pp said, IHT comes out of the estate.

I would add the the above, get power of attorney documents drawn up giving you both protection if either of you cannot look after your own affairs!!

If married, without a will, on death the order of inheritance is spouse, children, parents. If unmarried then it goes to children. Unmarried partners don't inherit.

If married, the spouse inherits without IHT. They can also inherit ISA allowances.

House prices have pushed a lot of families into IHT territory so a few friends who thought of marriage as an unnecessary piece of paper are having quick weddings for tax purposes.

Presuming your children are actually quite young... no they wouldn't be able to make decisions. But yes they can inherit.

You need a will.

"...for many reasons we have decided not to register our 'cultural' marriage, so I'm still a Miss."

and

"Is it easier just to register our marriage so it's recognised in the UK?"

It depends where you got married.

If you had a religious wedding in the UK (eg Muslim, Sikh or Hindu) then it is very straight forward just to go the Registry Office and have a civil ceremony and you will then be married.

However, if you got married abroad then things are different. If you got married in a different country and a religious wedding is accepted in that country as a legal marriage then you are already married in the UK and you cannot register your marriage again.

"Would kids be charged inheritance tax?"

That all depends on how much your estate is worth and what is written in your will (if you have one).

If you do not have a will and your marriage is not recognised in this country then a jointly owned property (unless it's owned as tenants in common) will pass to your partner. The same applies to any jointly owned bank accounts etc.

Everything else in just your name will go to your children.

In this situation, IHT is payable on everything over the value of £325,000 in your estate. And that includes the half of your home that you own jointly with your partner. So both your partner and children could face having to deal with IHT depending on the total value of your estate.

If you were married abroad or you subsequently get married here then it increases how much you can leave without paying any IHT.

As a previous poster said "...a few friends who thought of marriage as an unnecessary piece of paper are having quick weddings for tax purposes."

I would strongly suggest that you write a will and also determine if you are already married in the UK.

I am a much higher earner...but don't really know what the implications of that is really!!

Make wills!

Speak to a solicitor, to understand whether your marriage is already legally recognised in the UK, and your best course if it isn't. Contrary to what you sometimes read on MN, it isn't always to a woman's advantage to be married (as opposed to co-habiting), but it very often is.

Sorry to remind you of this, but anyone could die unexpectedly. Think what a mess you are going to be in, if your DH dies now (or vice-versa if you die, especially as the higher earner). Even you don't know if you are legally married or not.

Make a will, but they are voided by marriage (unless made in the expectation of marriage) so you either need to work out whether you are married first, or get it documented that the will is made in the expectation of becoming married.

Correct that you need to get advice about whether your marriage is recognised in the UK. Incorrect that a will is voided by marriage in all parts of UK. It is not voided in Scotland. Get proper legal advice.